Gray Areas in Gross Income Available Calculations
by Mark Kohn, CPA
There are certain issues that affect the calculation of what is available for spousal and child support that are theoretically unclear. This article will present a few of them, showing the logic behind various positions.
Income or Cash Flow?
There are two schools of thought in this area, but sometimes the two converge.
The first position is that one should look at the income that is earned by the spouses. The second position is that one should look at the cash flow that is available to pay spousal and child support. The following examples will illustrate numerous situations where the differences will be apparent.
